OTIS vs FELE

For growth investors, Franklin Electric Co.

, Inc. (FELE) is the stronger pick with 5. 4% revenue growth year-over-year, versus 1. 2% for Otis Worldwide Corporation (OTIS). Otis Worldwide Corporation (OTIS) offers the better valuation at 22. 1x trailing P/E (18. 4x forward), making it the more compelling value choice. Analysts rate Otis Worldwide Corporation (OTIS) a "Hold" — based on 13 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Otis Worldwide Corporation (OTIS) is the cheapest at 22.

1x versus Franklin Electric Co. , Inc. at 30. 8x. On forward P/E, Otis Worldwide Corporation is actually cheaper at 18. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Otis Worldwide Corporation wins at 1. 67x versus Franklin Electric Co. , Inc. 's 2. 48x — a reasonable growth-adjusted valuation.

Over the past 5 years, Franklin Electric Co.

, Inc. (FELE) delivered a total return of +20. 3%, compared to +7. 7% for Otis Worldwide Corporation (OTIS). Over 10 years, the gap is even starker: FELE returned +229. 5% versus OTIS's +82. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Otis Worldwide Corporation (OTIS) is the lower-risk stock at 0.

37β versus Franklin Electric Co. , Inc. 's 0. 89β — meaning FELE is approximately 137% more volatile than OTIS relative to the S&P 500.

By revenue growth (latest reported year), Franklin Electric Co.

, Inc. (FELE) is pulling ahead at 5. 4% versus 1. 2% for Otis Worldwide Corporation (OTIS). On earnings-per-share growth, the picture is similar: Otis Worldwide Corporation grew EPS -14. 0% year-over-year, compared to -15. 8% for Franklin Electric Co. , Inc.. Over a 3-year CAGR, OTIS leads at 1. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Otis Worldwide Corporation (OTIS) is the more profitable company, earning 9.

6% net margin versus 6. 9% for Franklin Electric Co. , Inc. — meaning it keeps 9. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: OTIS leads at 14. 8% versus 12. 7% for FELE. At the gross margin level — before operating expenses — FELE leads at 35. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Otis Worldwide Corporation (OTIS) is the more undervalued stock at a PEG of 1. 67x versus Franklin Electric Co. , Inc. 's 2. 48x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Otis Worldwide Corporation (OTIS) trades at 18. 4x forward P/E versus 21. 6x for Franklin Electric Co. , Inc. — 3. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for OTIS: 18. 8% to $92. 00.

All stocks in this comparison pay dividends.

Otis Worldwide Corporation (OTIS) offers the highest yield at 2. 1%, versus 1. 1% for Franklin Electric Co. , Inc. (FELE).

For long-horizon retirement investors, Otis Worldwide Corporation (OTIS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

37), 2. 1% yield). Both have compounded well over 10 years (OTIS: +82. 0%, FELE: +229. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.